Challenging CGST Act Section 168A Notifications: Legal Scrutiny of Administrative Orders and Procedural Compliance

HC issued a Rule challenging notifications under Section 168A of CGST Act, questioning their validity and procedural compliance. The Court found the Petitioner's arguments arguable and granted interim relief, preventing coercive action by Respondents. The matter was scheduled for further hearing, with parties allowed to apply based on potential Supreme Court guidance.

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The Writ Petition challenges the validity of certain notifications issued under Section 168A of the Central Goods and Service Tax Act, 2017 (CGST Act) by the Union of India and the State of Maharashtra. The main contention is that while some notifications were issued on the recommendation of the GST Council, subsequent notifications were not, rendering them illegal and ultra vires. The impugned order is also challenged as it was passed beyond the extended period prescribed by the notifications.The Petitioner argues that the issue has been addressed by the Gauhati High Court and the Telangana High Court, with the latter's decision being influenced by a Supreme Court order. The Petitioner seeks admission of the Writ Petition, issuance of a rule, and interim relief.On the other hand, the State argues that Section 168A was enacted to address situations like wars and pandemics, including the Covid-19 Pandemic, as force majeure events. The State contends that the notifications were justified under Section 168A, but is unsure if they were recommended by the GST Council.The Court finds the issues raised in the Writ Petition arguable, noting that similar matters are pending before the Supreme Court. Consequently, a Rule is issued, and interim relief is granted to the Petitioner, preventing coercive action by the Respondents. The Court allows parties to apply based on the Supreme Court's decision and schedules the matter for a joint hearing with another Writ Petition.In summary, the Court considered the legality of notifications issued under Section 168A of the CGST Act, the necessity of GST Council recommendations, and the timeliness of the impugned order. The Court found merit in the Petitioner's arguments, granting interim relief and setting the matter for further proceedings.

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